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HomeMy WebLinkAbout2006 06-05 FCMFinancial Commission Regular Meeting Minutes 5 June 2006 1. Call to Order The meeting was called to order by Mr. Nemec at 8:43 PM 2. Roll Call Members Present: Commissioners Nemec and Shogren-Smith and Council Member Lasman. Commissioner Maze was excused. Staff present were Acting City Manager Boganey and Director of Fiscal & Support Services Jordet. 3. Adoption of the Aaenda Ms. Shogren-Smith proposed and Mr. Nemec seconded a motion to adopt the agenda as presented. With all voting in favor, the motion was adopted. 4. Minutes Ms. Shogren-Smith proposed and Mr. Nemec seconded a motion to adopt the minutes of the 26 January 2006 meeting as presented. With all voting in favor, the motion was adopted. 5. Selection of Chair for the Remainder of 2006 With the passing of Mr. Escher a new Chair for the Commission is required for the remainder of 2006. Ms. Shogren-Smith moved that Mr. Nemec become Chair for the remainder of the year. Mr. Nemec was required to second the motion as no other voting members of the Commission were present. With all voting in favor the motion was adopted, making Mr. Nemec Chair of the Commission. Mr. Nemec then named Ms. Shogren-Smith as Vice Chair of the Commission. 6. Citv Council Compensation Ms. Shogren-Smith and Mr. Jordet reviewed the recommendation of the Subcommittee on City Council Compensation which met on 6 April 2006. Members of the Subcommittee were Mr. Anderson, Mr. Paulson and Ms. Shogren-Smith. At that meeting, having reviewed the information presented on current compensation and comparison with the designated other cities, the Subcommittee suggested that Brooklyn Center's City Council was still in the same relative position that it was at the last review. Therefore, the same compensation solution was endorsed; no increase for 2007 and a 2% increase for 2008. On behalf of the full Commission, • Ms. Shogren-Smith moved and Mr. Nemec seconded a motion recommending no increase in City Council wages for 2007 and a 2% increase in 2008. With all present voting in favor, the motion was approved. 7. Centerbrook Golf Course Mr. Jordet presented the information on restructuring the financing of the Centerbrook Golf course. The plan to operate the course, make needed repairs and small capital investments and repay an outstanding interfund loan of $ 800,000 to the Capital Improvements Fund was reviewed by the Park and Recreation Commission in May of 2006. They endorsed the plan unanimously.. Ms. Shogren- Smith moved and Mr. Nemec seconded a motion recommending the Plan to the City Council for adoption. With all voting in favor, the motion was adopted. 8. 2007 Budget Overview and Calendar Mr. Jordet presented the materials on the 2007 budget overview. These were the same materials presented to and discussed with the City Council at a 22 May 2006 Work Session. Council Member Lasman informed the Commission that the Council had agreed to the priorities in the presentation and instructed the staff to prepare the preliminary 2007 budget on this basis. No action was taken by the Commission. 9. Other Business • No other business was brought before the Commission. 10. Adiournment With no other business to transact, the meeting was adjourned at 9:07 PM. • 2 MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION JUNE 5, 2006 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session and was called to order by Mayor Pro Tern Lasman at 6:30 p.m. ROLL CALL Mayor Pro Tem Kay Lasman and Councilmembers Kathleen Carmody, Diane Niesen, and Mary O'Connor. Mayor Myrna Kragness was absent and excused. Also present: Assistant City Manager/Director of Operations Curt Boganey, Fiscal and Support Services Director Dan Jordet, and Deputy City Clerk Camille Worley. Others present were Financial Commissioners Mark Nemec and Susan Shogren Smith. PRESENTATION BY AUDITOR OF 2005 AUDIT AND COMPREHENSIVE ANNUAL FINANCIAL REPORT David Mol, Partner, HLB Tautges Redpath, Ltd. outlined the following included on the Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards: • Internal Control Over Financial Reporting (Reportable Conditions) o Journal Entries o Utility Billing Adjustments o Golf Course Z Tapes o Water Consumption o Investment Policy o Liquor Inventory Adjustments • Compliance and Other Matters o Late Submittal of Report of Outstanding Obligations to the County Auditor It was noted that there are some recently issued accounting standards that will impact the budget process next year. Councilmember Niesen stated there was a separate letter to management last year and not this year. She stated difficulty finding the condition of Z Tape. Mr. Mol stated all the findings were placed in the internal control letter, whereas last year they were separated and some were included in the management letter. He stated now anything significant must be placed in an Internal Control Letter. 06/05/06 -1- Fiscal and Support Services Director Dan Jordet stated it is a repeat condition however the Z Tape condition was corrected last year and this year. Councilmember Lasman stated she would like a summary report given at the next regular Council meeting for the benefit of the residents. Assistant City Manager/Director of Operations Curt Boganey stated it would be placed on a City Council agenda to give a summary report to the public. Mr. Jordet discussed the Investment Policy and stated he would like to review the Investment Policy, bring it to the Financial Commission for review, then to the City Council for amendment. He also discussed the purchasing of corporate paper and stated purchasing such items would be out of the norm, even though it is allowed by policy. He stated the City's investments are restricted, justifying the review of the Investment Policy. Councilmember O'Connor inquired about the collection of property taxes. Andrew Hering, Senior Auditor, HLB Tautges Redpath, Ltd. explained that 100% of the tax levy will never be collected. Mr. Hering discussed the draft Audit Management Letter and outlined the following: • Report summary elements, overview, and other matters • Financial Statement Analysis o Summary of Financial Activity, Statement of Activities, Tax Increments, and Interfund Payables/Receivables. • General Fund o Working Capital Reserve • Special Revenue Funds o Housing and Redevelopment Authority Fund, Economic Development Authority Fund, TIF District No. 2-Earle Brown TIF Fund, TIF District No. 3 Fund, TIF District No. 4 Fund, and City Initiatives Grant Fund. • Debt Service Funds • Capital Projects Funds o Capital Reserve Emergency Fund, Capital Improvements Fund, Municipal State Aid for Construction Fund, Infrastructure Construction Fund, EBHC Improvements Fund, Street Reconstruction Fund, Technology Fund, Municipal Liquor Fund, Golf Course Fund, EBHC Fund, Recycling and Refuse Fund, Water Utility Fund, Sanitary Sewer Fund, Storm Drainage Fund, and Street Light Fund. Municipal Liauor Fund Mr. Hering discussed the process of the Municipal Liquor audit and how potential inventory shortages were estimated. Mr. Boganey explained that it is possible that the inventory system was incorrectly used, rather than actual inventory shortages. Golf Course Fund Mr. Jordet discussed the accounting of the Golf Course Fund. Mr. Hering, Staff, and the City Council discussed the different financial statements for the Golf Course Fund. • 06/05/06 -2- Councilmember O'Connor inquired about the Debt Service Principle under expenditures, particularly the amount of interest owed plus principle. Mr. Jordet stated it is shown under Services and Other Charges and stated it is important to keep track of the Debt Service Principle because that is what has a direct impact on how much TIF Assistance the project gets. • Internal Service Funds MISCELLANEOUS Councilmember Niesen stated she would like her proposed City Manager Evaluation Form to be brought to a vote. She stated she did a lot of work on it and is not willing to wait until February of 2007 for the item to be brought to a vote. Mayor Pro Tem Lasman responded it was the consensus of the City Council that it would be looked at in February 2007, when the new City Council has been elected and the new City Manager would have had some time to get to know the City. Councilmember Carmody stated it is not appropriate to try to get it on the agenda after the entire City Council decided it would not be until February 2007. She stated Councilmember Niesen could request that it be placed on the agenda at the time of agenda approval. She stated no intention to vote for approval; however, it should be brought up in front of the entire City Council to be placed on the agenda. Councilmember Niesen stated all City Councilmembers are equal and should be allowed to do business by bringing something to a vote. Mayor Pro Tern Lasman stated the consensus of the City Council still stands and it should not be voted on at this time. ADJOURNMENT A motion by Councilmember Carmody, seconded by Councilmember Niesen to adjourn the Work Session at 8:42 p.m. Motion passed unanimously. City Clerk • Mayor/President 06/05/06 -3-